The study on the role of auction mechanism in carbon emissions trading system

Carbon emission trading is one way of using market mechanism to promote the low carbon economy. The auction approach is an economic efficient way in carbon emission trading. This paper, based on a multi-agent carbon allowance auction mode l, aims to study in two scenarios the respective payoff of the government as the main body and the participating manufacturers in the auction, a s well as the issue of fairness in order to examine the pros and cons of two auction mechanisms, and then shed light on China´s carbon emissions trading system.